mains-paper-v-indian-economy-inflation-unemployment-and-poverty-question-india

WBCS MAIN PAPER V : INDIAN ECONOMY - INDIAN TAX SYSTEM

1.Fiscal policy refers to

(A) the actions of the central bank in controlling money supply.

(B) the government's regulation of financial intermediaries.

(C) tax and expenditure policy used by the government to influence the size of the economy.

(D) None of the above

2. Find the odd one out:

(A) Securities Transaction Tax (STT)

(B) Capital Gains Tax

(D) Goods and Services Tax (GST)

3. GST was recommended by

(A) 13th Finance Commission

(B) 14th Finance Commission

(D) None of the above

4. Which one of the following is NOT a source of the State tax revenue?

(A) Motor Vehicle tax

(B) Corporate Tax

(D) Entertainment tax

1. Share of direct taxes in India in post economic reform is

(A) increasing (B) decreasing (C) can't say anything (D) fluctuating

2.The most imponant source of revenue to the states is

(A) Sales tax (B) Service tax (C) Excise duty (D) None of the above

3. Consider the following statements about GST:

(i) Both Central and State taxes will be collected at the point of sale.

(ii) The Central and State GST will be charged on the manufacturing cost

Which of the above statements isfare correct?

(A) (i) only

(B) (ii) only

(C) both (i) and (ii)

(D) None of the above

4.Which of the following will not come under the proposed GST in India

(A) Agricultural products (B) Handicrafts (C) Gems and Jewelleries (D) Petroleum products

1.In the post economic reform period, the tax reform measures implied the following :

(A) Decline in the rates of taxes and reducing evasion

(B) Increase in tax exemption

(D) Increase in the administrative complexity

2.Find which statement is correct.

Sales Tax

(A) is progressive. (B) is regressive. (C) is non-inflationary. (D) brings distributive justice.

3.Taxation on agricultural income in India is

(A) relatively high. (B) low. (C) proportionate to its contribution. (D) None of the above

4.Land revenue is

(A) collected by Central Government and distributed among states.

(B) collected and retained by Central Government.

(D) collected and utilised by State Governments.

5.Amount earned by Union Excise Duty is shared by

(A) Central Government

(B) State Governments

(D) Central and State Governments

6.Corporate profit tax is

(A) a state level tax

(B) collected and used by Union Government

(D) collected by centre, used by State Govt.

7.Proceeds of Personal income tax go to

(A) Central Government

(B) State Governments

(D) Central and State Governments

8.Relative importance in Government revenue in India is high in case of

(A) Direct tax (B) Indirect tax (C) Public debt (D) Deficit financing

9.Find which statement is correct.

Sales Tax

(A) is progressive. (B) is regressive. (C) is non-inflationary. (D) brings distributive justice.

10.Point out the incorrect statement :

Excise duty is

(A) not regressive.

(B) not unpopular.

(D) None of the above

11. Central Government do not collect revenue from these sources :

(A) Central excise duty and Customs duty

(B) Personal Income tax and Corporate tax

(C) Agricultural Income tax and Land Revenue

(D) Wealth tax and Capital gains tax

1.The govt. collected what amount as GST in Dec 2018 ?

(A) Rs.92,726 Cr. (B) Rs.94,726 Cr. (C) Rs.95,726Cr. (D) Rs.96,726Cr.

2.The GST council took a slew of decision aimed at reducing the tax and compliance burden on small and medium enterprises. The limit for eligibility for the Composition Scheme would be raised to an annual turnover of —— from April, 1019.

(A) Rs. 1 Cr. (B) Rs. 1.5 Cr (C) Rs. 2 Cr. (D) Rs. 2.5 Cr.

3.Find the odd one out :

Direct Taxes are

(A) Income Tax

(B) Capital gains Tax

(D) Goods and Services Tax (GST)

4.Which State has announced new temporary cow shelters in the urban and rural areas and imposition of a cess on excise duty for the same ?

(A) Madhya Pradesh (B) Rajasthan (C) Uttar Pradesh (D) Haryana

1.The Tobin tax, initially suggested, by James Tobin was a tax on which among the following transactions ?

(A) Property Transactions (B) Currency Transactions (C) Industrial Transactions (D) All of the above

2.What does 'Revenue Neutral Tax Rule' means in reference to GST ?

(A) The rate at which tax revenues for States and Centre will remain same as before GST.

(B) The tax rate will remain the same for Central and State.

(D) None of the above

3.Agriculture income tax is assigned to the State Government by

(A) Finance Commission

(B) National Development Council

(D) Constitution of India

4.All taxes come under

(A) Revenue receipts (B) Capital receipts (C) Public debt (D) Both (A) and (B)

5.GST will be levied on

(A) Manufacturers (B) Retailers (C) Consumers (D) All of the above

6.Which constitutional amendment is done to pass the GST bill ?

(A) 101st (B) 120th (C) 122nd (D) 115th

7.Which of the following tax is abolished by the Goods and Services Tax ?

(A) Property Tax (B) Corporation Tax (C) VAT (D) All of the above

8.Consider the following statements about GST:

i) Both Central and State taxes will be collected at the point of sale.

ii) The Central and State GST will be charged on the manufacturing cost.

Which of the above statements are correct ?

(A) Only (i) (B) Only (ii) (C) Both of the above (D) None of the above

1.Which of the following taxes is levied and collected by the union, but assigned to the states ?

(A) Sales tax (B) Octroi (C) Excise (D) Consignment tax

2.The income tax in India is

(A) indirect and progressive

(B) direct and proportional

(D) indirect and proportional

3.The largest revenue in India is obtained from

(A) Sales Tax (B) Direct Taxes (C) Excise Duties (D) None of the above

4.Who Imposes corporation tax in India ?

(A) State govt. (B) Central govt. (C) Both State and Central govt. (D) Local govt.

5.Which of the following tax is imposed by the Central government but collected and kept by the State governments ?

(A) Excise duty (B) Custom duty (C) Stamp duty (D) Wealth tax

6.Which Indian state gives highest income tax collection to the Government of India ?

(A) Uttar Pradesh (B) Kerala (C) Maharashtra (D) Goa

7.The government imposes taxes to

(A) check the accumulation of wealth among the rich

(B) run the machinery of state

(D) None of the above

8.States each maximum revenue through

(A) Tax Fines (B) Customs (C) License sales (D) Commercial Taxes

9.Revenue of the state governments are raised from the following sources, except

(A) entertainment tax (B) expenditure tax (C) agricultural income tax (D) land revenue

10.Tax-structure in India has become regressive in character as

(A) share of direct taxes and indirect taxes are same

(B) share of direct taxes increasing and indirect taxes decreasing

(D) share of direct taxes and indirect taxes both falling

11.An ad valorem duty is a tax on the basis of

(A) the unit of the commodity

(B) the advertisement expenditure

(D) None of the above

12.Government imposes taxes to

(A) run the machinery of the state

(B) uplift weaker sections

(D) None of the above

13.States earn maximum revenue through

(A) land revenue (B) custom revenue (C) commeircial taxes (D) excise duties on intoxicants

1.Which of the following duties is imposed by the Central Government but collected by the State Government ?

(A) Stamp Duties (B) Railways (C) Agriculture (D) None of the above

2.Which of the following taxes is levied by the State Government only ?

(A) Entertainment Tax (B) Wealth Tax (C) Income Tax (D) Corporation Tax

3.The condition of indirect taxes in the country's revenue is approximately —

(A) 70% (B) 75% (C) 80% (D) 86%

4.The tax levied on the interstate trade of goods is-

(A) Sales tax (B) Excise tax (C) Service tax (D) Central Sales tax

5.Who was the Chairman of the Tax Reforms Committee in 1991 ?

(A) C. Rangarajan (B) Raja C. Chelliah (C) Partha Sarathi Som (D) None of the above

6.Revenues from Service Tax have been-

(A) increasing year after year

(B) decreasing year after year

(D) None of the above

7.The sources of non-tax revenue for government of India are -

(A) net receipts from railway

(B) net receipts from postal department

(D) All of the above

8.On which one of the following is the benefits received principle of taxation to achieve optimally bases ?

(A) Marginal benefit received

(B) Total benefit received

(D) Ability to pay for the benefit

9.State can earn maximum revenue through -

(A) land revenue (B) custom revenue (C) commercial taxes (D) excise duties on intoxicants

10.What is MAT ?

(A) Maximum Alternate Tax (B) Minimum Alternate Tax (C) Multiple Alternate Tax (D) Major Alternate Tax

11.Professional tax is imposed by the —

(A) Central Government

(B) State Government

(D).None of the above

12.Revenues collected from Professional tax and used by the -

(A) Central Government

(B) State Government

(D) None of the above

1.Corporation tax is

(A) An important state level tax (B) Collected by local self-government

(C) A Central tax (D) None of the above

2.Union excise duty is imposed on

(A) Sale of product (B) Personal and corporate income

(C) Ex-factory production (D) None of the above

3.Find out the incorrect statement

Chelliah Committee recommended regarding tax reforms -

(A) To simplify rules of tax (B) To reduce rate of income tax

(C) To raise the rate of customs duties (D) Both (A) and (B)

4.Major burden of excise tax falls on

(A) Very wealthy persons (B) Rich persons

(C) Low middle class and poor persons (D) None of the above

5.Which one of the following items takes importance in government earnings in India ?

(A) Deficit budget (B) Loan (C) Direct Tax (D) Indirect Tax

6.Sale Tax

(A) Is progressive (B) Is regressive (C) Brings distributive justice (D) Is non inflationary

7.Maximum revenue in India comes from

(A) Corporation tax (B) Income tax (C) Customs duty (D) Excise duty

1.Which among the following is the exclusive jurisdictipn of the State Governments ?

(A) Corporation Tax (B) Customs Duty Tax (C) Sales Tax (D) Income Tax

2.MODVAT (Modified Value Added Tax) was introduced in India in -

3.Expenditure for Public Admistration is under -

(A) Plan expenditure (B) Non-plan expenditure (C) Profitable expenditure (D) None of the above

4.Fringe Benefit Tax (FBT) is levied on the employer for -

(A) The benefits that are usually enjoyed collectively by the employees and cannot be attributed to individual employees

(B) The benefits enjoyed by individual employees

(D) None of the above

5.CENVAT is associated with -

(A) Direct tax (B) Income tax (C) Indirect tax (D) Service tax